What is CSDDD?

The Corporate Sustainability Due Diligence Directive (CSDDD) is a European regulation that requires companies to identify and manage human rights and environmental risks in their operations and supply chains.

CSDDD introduces obligations to assess ESG risks, take preventive measures, and monitor outcomes over time. The focus is on direct suppliers, though companies must address risks from indirect relationships if there is credible evidence of harm.

Under the Omnibus Proposal, the regulation will apply in two phases: first to very large companies, and later to those with over 1,000 employees and €450 million turnover. The first compliance deadlines begin in 2028.

CSDDD also requires companies to prepare and disclose a climate transition plan, which is now aligned with CSRD to avoid duplication.

Timelines and scope are still subject to change according to regulatory updates.